IDEAS home Printed from https://ideas.repec.org/p/diw/diwsop/diw_sp1019.html
   My bibliography  Save this paper

Does Residential Segregation Matter for the Labor Market Performance of Immigrants? Evidence from Germany

Author

Listed:
  • Sebastian Reil

Abstract

With the arrival of over one million asylum seekers in Germany in 2015, policy discussions opened whether refugees should be spread across the country or spatially concentrated in order to facilitate their integration in society. When an immigrant locates in a residential area with many natives or many foreigners he has access to different respective social networks which are important for the labor market performance. This paper uses the SOEP dataset to estimate which residential location decision via the networks leads to a better labor market performance. Findings show that residential concentration of immigration increases wages of new immigrants, but also raises their unemployment. Native wages are suppressed in an area with many foreigners.

Suggested Citation

  • Sebastian Reil, 2018. "Does Residential Segregation Matter for the Labor Market Performance of Immigrants? Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 1019, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp1019
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.612383.de/diw_sp1019.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gianmarco I. P. Ottaviano & Giovanni Peri, 2021. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 9, pages 245-290, World Scientific Publishing Co. Pte. Ltd..
    2. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    3. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    4. Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
    5. Anna Piil Damm, 2009. "Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 281-314, April.
    6. Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(1), pages 145-173.
    7. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    8. Semrad, Alexandra, 2015. "Immigration and educational spillovers: evidence from Sudeten German expellees in post-war Bavaria," Discussion Papers in Economics 24851, University of Munich, Department of Economics.
    9. Roger Andersson, 1998. "Socio-spatial Dynamics: Ethnic Divisions of Mobility and Housing in post-Palme Sweden," Urban Studies, Urban Studies Journal Limited, vol. 35(3), pages 397-428, March.
    10. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," IZA Discussion Papers 2915, Institute of Labor Economics (IZA).
    11. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 329-357.
    12. repec:zbw:rwirep:0020 is not listed on IDEAS
    13. David Card & Alexandre Mas & Jesse Rothstein, 2008. "Tipping and the Dynamics of Segregation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(1), pages 177-218.
    14. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Tsang, Eric W. K., 2014. "Old and New," Management and Organization Review, Cambridge University Press, vol. 10(03), pages 390-390, November.
    16. Felix Büchel & Joachim R. Frick, 2004. "Immigrants in the UK and in West Germany –Relative income position, income portfolio, and redistribution effects," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(3), pages 553-581, August.
    17. Guillermina Jasso & Mark R. Rosenzweig & James P. Smith, 2000. "The Changing Skill of New Immigrants to the United States: Recent Trends and Their Determinants," NBER Chapters, in: Issues in the Economics of Immigration, pages 185-226, National Bureau of Economic Research, Inc.
    18. Cutler, David M. & Glaeser, Edward L. & Vigdor, Jacob L., 2008. "When are ghettos bad? Lessons from immigrant segregation in the United States," Journal of Urban Economics, Elsevier, vol. 63(3), pages 759-774, May.
    19. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    20. Amelie F. Constant, 2014. "Do migrants take the jobs of native workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-10, May.
    21. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(1), pages 128-161.
    22. Albrecht Glitz, 2012. "The Labor Market Impact of Immigration: A Quasi-Experiment Exploiting Immigrant Location Rules in Germany," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 175-213.
    23. Christina Gathmann & Nicolas Keller & Ole Monscheuer & Thomas Straubhaar & Holger Schäfer & Klaus Zimmermann & Herbert Brücker, 2014. "Zuwanderung nach Deutschland — Problem und Chance für den Arbeitsmarkt," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(3), pages 159-179, March.
    24. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 549-599.
    25. repec:iza:izawol:journl:y:2014:p:10 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    2. Joan Monras, 2020. "Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis," Journal of Political Economy, University of Chicago Press, vol. 128(8), pages 3017-3089.
    3. Engdahl, Mattias & Willis, Sébastien & Åslund, Olof, 2024. "Professional networks and the labour market assimilation of immigrants," Working Paper Series 2024:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Collins, William J. & Zimran, Ariell, 2019. "The economic assimilation of Irish Famine migrants to the United States," Explorations in Economic History, Elsevier, vol. 74(C).
    5. Moreno-Galbis, Eva & Tritah, Ahmed, 2016. "The effects of immigration in frictional labor markets: Theory and empirical evidence from EU countries," European Economic Review, Elsevier, vol. 84(C), pages 76-98.
    6. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    7. Tao Song & Huanan Xu, 2020. "Anywhere they go, we go: Immigration inflow's impact on co‐ethnic natives in the U.S," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 191-215, July.
    8. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    9. repec:zbw:rwirep:0536 is not listed on IDEAS
    10. Tse, Michael M. H. & Maani, Sholeh A., 2016. "The Labour Market Effect of Immigration: Accounting for Effective Immigrant Work Experience in New Zealand," IZA Discussion Papers 10422, Institute of Labor Economics (IZA).
    11. Schaffner, Sandra & Treude, Barbara, 2014. "The Effect of Ethnic Clustering on Migrant Integration in Germany," Ruhr Economic Papers 536, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Sébastien Willis, 2022. "Workplace Segregation and the Labour Market Performance of Immigrants," CESifo Working Paper Series 9895, CESifo.
    14. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    15. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pellizzari, 2015. "Immigration, Housing Discrimination and Employment," Economic Journal, Royal Economic Society, vol. 125(586), pages 82-114, August.
    16. Edo, Anthony & Rapoport, Hillel, 2019. "Minimum wages and the labor market effects of immigration," Labour Economics, Elsevier, vol. 61(C).
    17. Christoph Albert & Joan Monras, 2022. "Immigration and Spatial Equilibrium: The Role of Expenditures in the Country of Origin," American Economic Review, American Economic Association, vol. 112(11), pages 3763-3802, November.
    18. Anthony Edo & Farid Toubal, 2015. "Selective Immigration Policies and Wages Inequality," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 160-187, February.
    19. Markus Gehrsitz & Martin Ungerer, 2022. "Jobs, Crime and Votes: A Short‐run Evaluation of the Refugee Crisis in Germany," Economica, London School of Economics and Political Science, vol. 89(355), pages 592-626, July.
    20. Azlor, Luz & Damm, Anna Piil & Schultz-Nielsen, Marie Louise, 2020. "Local labour demand and immigrant employment," Labour Economics, Elsevier, vol. 63(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp1019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/sodiwde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.